Performance-linked executive compensation reflecting consolidated management metrics, key targets and share price
First written in FY2019. 3 of 7 entries say "Advanced", first in FY2020. Latest entry: FY2026.
- FY2026ReframedAnnual report
「To increase the motivation and morale of directors, excluding outside directors, to improve performance and promote management from a shareholder perspective, the company uses consolidated operating income, consolidated return on equity (ROE), the year-on-year change in stock market capitalization, and an overall evaluation against ESG targets as indicators for performance-linked compensation.」
A comprehensive evaluation of achievement against ESG targets was added to the existing indicators of operating income, ROE and the year-on-year change in share market capitalization. - FY2025ReframedAnnual report
「To increase the motivation and morale of directors, excluding outside directors, to improve performance and promote management from a shareholder perspective, the company uses consolidated operating income, consolidated return on equity (ROE), and the year-on-year change in stock market capitalization as indicators for performance-linked compensation.」
The performance-linked compensation indicators were changed from net income attributable to owners of the parent to consolidated operating income, and reorganized into a structure combining ROE and the year-on-year change in share market capitalization. FY2025 targets were operating income of ¥24,700 million and ROE of 9.0%, compared with actual results of operating income of ¥22,854 million and ROE of 8.5%. - FY2023Update of targets and actual results for performance-linked metricsAnnual report
「Targets and actual results for the indicators used for performance-linked compensation in the most recent fiscal year: net income attributable to owners of the parent—target ¥14,600 million, actual ¥13,742 million; consolidated return on equity—target 6.9%, actual 6.4%; year-on-year change in share market capitalization—actual 5.3%.」
The targets and actual results for the performance-linked compensation indicators were updated for FY2023. Net income and ROE fell short of their targets, while share market capitalization increased 5.3% year on year. - FY2022AdvancedAnnual report
「The indicators used for performance-linked compensation are net income attributable to owners of the parent, consolidated return on equity (ROE), and the year-on-year change in stock market capitalization.」
For the current fiscal year, net income attributable to owners of the parent was ¥14,543 million against a target of ¥11,300 million, ROE was 7.4% against a target of 6.0%, and share market capitalization increased 0.2% year on year, based on the indicators used for performance-linked compensation. - FY2021AdvancedAnnual report
「Specifically, compensation for inside directors comprises fixed monetary compensation, performance-linked monetary compensation and non-monetary restricted stock compensation.」
The company specified a compensation structure that includes restricted stock compensation in addition to fixed and performance-linked compensation. Net income attributable to owners of the parent, ROE and the year-on-year change in share market capitalization are used as performance indicators, and both targets and actual results are disclosed. - FY2020AdvancedAnnual report
「The executive compensation structure comprises fixed compensation based on position and responsibilities and performance-based compensation based on achievement of fiscal-year targets. Fixed compensation accounts for approximately 70%.」
The company disclosed a compensation structure comprising approximately 70% fixed compensation and performance-linked compensation, as well as a target and actual result of ¥15,600 million and ¥11,576 million, respectively, for net income attributable to owners of the parent, and a target and actual ROE of 8.6% and 6.7%, respectively. The Nomination and Compensation Committee established in October 2019 deliberates on and makes recommendations regarding compensation policy. - FY2019First statedAnnual report
「The policy for determining the amount of executive compensation and the method of calculating it comprises fixed compensation and performance-linked compensation. To strengthen the link to performance and enhance motivation and morale to improve results, the company individually evaluates achievement against consolidated management metrics and key targets, as well as the year-on-year change in share market capitalization. Compensation is determined for directors by the Board of Directors and for audit & supervisory board members through consultation among the audit & supervisory board members, taking into account prevailing market levels and balance with employee compensation.」
The company states its executive compensation policy of combining fixed and performance-linked compensation and evaluating consolidated management metrics, achievement of key targets and the year-on-year change in share market capitalization.